Home / Blog Index / The Finanser’s Week: 6th September – 12th September 2010

The Finanser’s Week: 6th September – 12th September 2010

Our biggest stories of the week are …

I've posted a few items about the Deutsche Börse this week.

If you can't afford the tech, get out of the market

Most of you will know about algo trading. If you don’t, it’s just a fancy way of saying automated trading and if you checkout the stats, 80% of trading in London is automated today compared to just 40% four years ago and virtually none a decade ago. Some say it’s bad and, just as you get to grips with what these systems can do, along come algorithmic newsfeeds.

In the second article, we look further at what the Börse are doing to avoid risks in clearing and settlement:

Circuit
breakers on the Deutsche Börse

After saying yesterday that we need better risk management systems to
avoid a future meltdown, I was fascinated to hear the news about Eurex
Clearing’s developments.  The presentation was titled:
“Innovation in Risk Management”, and I was intrigued from
the start.  Innovation and Risk? Surely they shouldn’t be
placed together as innovation is risk, isn’t it?   Maybe
not.  What Eurex Clearing is introducing is a circuit breaker
system for trading firms to avoid over-exposure in the markets intra-day
and in real-time.

In the third article, we take a view on locations for trade execution:

Forget
Frankfurt, I'm moving to Basildon

Since I first met the Deutsche Börse guys, I’ve found it
challenging to work out where they are.  Y’see, last year I
went to Börsenstraße in Frankfurt, as you would assume that
the Borse would be in the street named after it.  Well, it used to
be …

Meanwhile, a few other items:

Save Bulgaria's Stock Exchange

I had a reach out from Patrick Young, investment advisor, author of "The
Exchange Manifesto" and regular commentator on capital markets.  Patrick co-authored an opinion piece about the nationalisation of the Bulgarian Stock Exchange in the Wall Street Journal yesterday.  It appears to be an unfair and potentially destructive move.

Andrew Healy, Chief Executive of the National Irish Bank (NIB),
presents ideas for modernising payments in Ireland in a new report
released this week. He argues for two key objectives for 2013: reduce
cheque-use by 95% and reduce cash usage to below the EU average. 
For a long time now, we’ve known that Ireland’s a mess when
it comes to money.

Visa: processing global payments in under a second

I've used a video from Visa Europe to illustrate what real-time
payments processing means in practice for a while now, and finally
tracked it down.  It's a good video, tracking the journey of a payment from a Swedish bank customer using a mobile contactless phone in China.

As mentioned the other day, I will be at this year’s SWIFT Show
SIBOS focused upon a dialogue around the Long Now. The aim is to find
some big super-crunchy questions about the long view of banking and
finance, such as: "When will we know there won't be another
financial meltdown like the one we've just seen?"

The BBC recently reported that Sumo Wrestlers were to be given iPads as
it makes them easier to use, but it's not just Sumo Wrestlers that need
such systems. It seems many traders do too, as illustrated by these
stories of fat fingered fails over the past few years.

Summertime blues: give your firm agility

OK, you're all back from work and feeling the post-summertime holiday blues … now think about your company.  Most of you probably work for a large business.  An elephant of a company.  So think about how to make the Elephant dance … now stick him on a trampoline.

After the PSD and SEPA, has anything changed?

Last year, we performed a major survey in anticipation of the
implementation of the PSD and SEPA Direct Debits, to see how the world
viewed these areas.  This year, we're doing it again.   Click here to take the survey.

 

The major general news stories of the week include …

Diamond to be new head of Barclays – Financial Times

Former academic who has built Barclays Capital from scratch into a multibillion-pound operation, will take over from John Varley at Barclays' annual meeting next March

Diamond's new job at Barclays leaves his critics lost for words – The Independent

Barclays yesterday squared up to its critics by appointing the man who has come to epitomise casino capitalism as its new chief executive.

Barclays to create 600 jobs – The Independent

Barclays announced today that it is to create up to 600 jobs in Scotland, providing a much-needed boost to the financial services industry.

The bonus season is coming – and Ed Balls is right to foresee a train crash – The Telegraph

Banks need to do more this Christmas than hand out bumper cheques to their staff, says Boris Johnson.

HSBC threatens to quit London HQ – BBC

HSBC may quit its London headquarters if the UK government decides to break up big banks, a senior executive says.

Anglo-Irish Bank will be wound up – The Independent

The Irish Government will today ask the European Commission for permission to "decommission" the nationalised Anglo Irish Bank.

What next for Anglo Irish Bank? – BBC

The Irish Finance Minister will meet the EU Competition Commissioner Joachim Almunia today to discuss the fate of the collapsed Anglo Irish Bank.

Why the argument over 'too big to fail' could be too big to lose – The Telegraph

Ben Bernanke, chairman of the Federal Reserve, yesterday told us what he thinks is the most important lesson to learn from the financial crisis. Drum roll. And the answer is?

Metro Bank claims early success in fight for customers – The Independent

Metro Bank yesterday claimed to have beaten its target for new account openings this year in the space of just a month.

Banks leave customers in 'poverty' – BBC

High Street banks have been accused of leaving some customers in "dire poverty" after taking money out of their accounts without permission.

 

 

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About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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